The Board of Trustees of The Gabelli Dividend & Income Trust (NYSE:GDV) declared a $0.375 per share
cash distribution payable on March 26, 2007 to Preferred Shareholders of record on March 19, 2007.
The Preferred Shares, which trade on the New York Stock Exchange under the symbol "GDV Pr D", are
rated "Aaa" by Moody's Investors Service and have an annual dividend rate of $1.50 per share. The
Preferred Shares were issued on November 3, 2005 at $25.00 per share and pay distributions quarterly.
The Preferred Shares will be callable at any time at the liquidation value of $25.00 per share plus
accrued dividends following the expiration of the five-year call protection on November 3, 2010.
A portion of the distribution may be treated as long-term capital gain and qualified dividend income
for individuals, each subject to the maximum Federal income tax rate, which is currently 15% in taxable
accounts for individuals. Long-term capital gains, qualified dividend income, and ordinary income,
if any, will be allocated on a pro-rata basis to all distributions for the year. As of February 26,
2007, the date of this press release, the current distribution would include approximately 19% from
net investment income and 81% from net capital gains. The estimated components of each distribution
are provided to shareholders of record in a notice accompanying the distribution and are available on
our website (www.gabelli.com). The final determination of the sources of all distributions in 2007
will be made after year-end, and can vary from the quarterly estimates. All shareholders with taxable
accounts will receive written notification regarding the components and tax treatment for all 2007
distributions in early 2008 via Form 1099-DIV.
The Gabelli Dividend & Income Trust is a non-diversified, closed-end management investment company with
$2.5 billion in total assets whose primary investment objective is to provide a high level of total
return with an emphasis on dividends and income. The Fund is managed by Gabelli Funds, LLC, a subsidiary
of GAMCO Investors, Inc. (NYSE:GBL), which is a publicly traded NYSE listed company.